US Treasury chief says tariff war with China unsustainable, deal possible

The news: US Treasury Secretary Scott Bessent reportedly told a closed-door investor event in Washington Tuesday (Wednesday AEST) that the tariff standoff with China is “unsustainable” and that he expects the situation to de-escalate, Bloomberg reported citing people who attended.

Bessent said negotiations have not started yet, but that a deal is possible, the publication added.

The context: Bessent was speaking at an event on the sidelines of the IMF and World Bank's meetings, hosted by JPMorgan Chase, which wasn’t open to the public or media.

Bessent also reportedly said the US and China essentially have a trade embargo in place, with both slapping tariffs of more than 125% on each other’s goods. US stocks rose after his comments, with the S&P 500 index gaining as much as 2.9%.